Government contracting is a highly rewarding niche where companies can secure long-term contracts and steady revenue streams. However, contractors are held to high standards and subject to strict compliance, especially with timekeeping policies governed by the DCAA (Defense Contract Audit Agency) and other federal agencies.
Successful procurement of government contracts depends on passing DCAA’s SF1408 criteria, commonly known as the pre-award audit. Retaining these contracts and maintaining eligibility for future government projects require contractors to pass DCAA post-award audits.
This obligates companies to understand all requirements, keep up with regulatory changes, and maintain compliance.
This guide will discuss strategies on how to stay informed on DCAA regulations.
Understanding DCAA Regulations
The DCAA is a Department of Defense (DOD) auditing agency responsible for overseeing the financial affairs of government contracts.
The agency ensures that the DOD and other federal entities receive quality goods and services at fair prices through ensuring compliance with contract and agency specific regulations, including the methods and accuracy of timekeeping and tracking procedures, and the training of those associated with each contract.
The DCAA assesses contractors’ compliance with Federal Acquisition Regulations (FAR), Cost Accounting Standards (CAS), the Truth in Negotiations Act (TINA), and agency-specific FAR supplements.
Keeping up with changes in all the above frameworks and their impact on DCAA’s auditing standards, usually found in the DCAA contract audit manual (CAM), is integral but often challenging.
Government contractors should employ the following strategies to remain informed on changes in DCAA regulations:
Follow the Federal Register
The Federal Register is published every business day by NARA (National Archives and Records Administration). As the official journal of the federal government, it plays an integral role in disseminating new and amended regulations and rules in government contracting.
Government contractors should monitor the Federal Register to remain updated on the DCAA and other auditing agencies’ activities. Contractors can opt to subscribe to the Federal Register’s email alerts.
Monitor the Official DCAA Website and Resources
Every time a new regulation is implemented, it is featured on the DCAA’s official website. Government contractors should regularly check the site for updates or changes in regulations. The CAM is also updated.
In addition, the DCAA issues Audit Guidance Memos (AGMs) and Memorandum for Regional Directors Covering Audit Guidance (MRD). These resources contain non-binding updates on regulations, interpretations of existing rules, and detailed procedural instructions.
Albeit meant to guide DCAA auditors, AGMs and MRD can help government contractors stay ahead of changes in auditing standards. Contractors can also attend the DCAA’s webinars and training courses.
Join Industry Associations
Various industry associations are championing the interests of government contractors. These associations provide resources to help members stay informed on DCAA and other agency regulations. These industry associations include:
National Contract Management Association (NCMA)- Professional Services Council (PSC)
- Government Contractors Association (GCA)
Contractors can become members of these associations and attend their conferences and webinars. At these events, they can get updates on DCAA regulations and network with other industry players. Contractors can also benefit from the educational materials and publications offered by these associations.
Follow Industry Publications
Government contractors should subscribe to industry publications such as the Defense News, Government Executive, and Federal Times. These publications provide comprehensive coverage of government affairs, including updates on DCAA regulations.
They also provide the latest information on changes in auditing standards, policy shifts, and emerging best practices for government contracting.
Subscribe to Relevant Newsletters
An industry newsletter is an efficient and effective way of staying up-to-date with DCAA and other government contracting rules without having to sift through multiple sources of information manually.
These are usually provided by DCAA compliance experts, but it’s essential to ensure that credible organizations publish the newsletters. Industry newsletters provide insights and practical advice on how to adapt to new regulations, thereby enhancing a contractor’s capability to maintain compliance.
Partner With DCAA Compliance Experts
Regular monitoring of DCAA resources, industry publications, the Federal Register, and other sources, such as the FAR website, can be too time-consuming for contractors who still have to deal with contract administration. Working with DCAA compliance experts can be an easier way to remain updated on DCAA regulations.
These professionals specialize in ensuring DCAA compliance and, as such, are always up-to-date on regulatory changes. They also offer guidance and assistance in preparing for and responding to DCAA audits. Plus, they provide these expert services:
- Review and update business systems and procedures
- Ensure DCAA compliant timekeeping
- Provide guidance on accounting for government contracts and financial reporting
- Conduct internal audits
- Provide training for employees on DCAA regulations
Working with DCAA compliance experts allows government contractors to focus on the deliverables, which are also integral in retaining and winning future contracts.
Stay Informed on the Latest Changes in DCAA Regulations With Diener & Associates
Diener & Associates’ seasoned DCAA compliance experts and CPAs work closely with government contractors to help them understand the latest federal contracting developments and ensure compliance.
By partnering with Diener & Associates, contractors get access to DCAA-compliant business systems and specialized consulting services. Contact Diener & Associates today for a rewarding partnership that guarantees DCAA compliance and a competitive edge.